Happy New Year Surfers.
EUR/USD was on a roller coaster ride on Friday as Price Action (PA) bounced firstly off Daily Pivot (DP) and then off DR-1 but fell short of our 1.3115 Daily Critical Zone (DCZ) before plummeting over 100 pips to close the week just below the prodigious 1.3030 DCZ. This is a very familiar end of week for a cross that simply cannot find/sustain a trend.
This time last week, EUR/USD had retraced 50% of the 6 week long rally off a particularly strong confluence of Support…… http://clip2net.com/s/5jpgNM . If EUR/USD can’t find support at 1.3030, it’s hard to believe the confluence of our 1.2909 DCZ and 1 yr old Support Trendline won’t be a minimum target this week….. http://clip2net.com/s/5jplzt . First day of the Month means Pivot changes and this month’s is quite relevant. Weekly has settled right on top of Daily but below Monthly, creating a perfect Bearish formation.
The Day Ahead
I’m unbiased but can certainly see the Pivot formation and target below. A decent double bottom #1 and the past Support of 1.3030 tells me there’s uncertainty in the air. The continuation flag #2 that’s forming sees me slightly favouring the Bears but I’d like to see some Price Action before entering.
High Impact News
|4:00pm||USD||ISM Manufacturing PMI|
Have a great first week of the New Financial Year.